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The City of Macon was incorporated on December 10. 1823 under the provisions of an Act of the General Assembly of Georgia. The City operates under a Mayor-Council form of government and provides the following services as authorized by its charter: public safety (police and fire services), highways and streets, sanitation, health and social services, culture-recreation, public improvements, planning and zoning, and general administrative services.
FINANCIAL STRUCTURE
FUND ACCOUNTING
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
The level of control or level at which expenditures may not legally exceed the budget is the Fund. Any change in the appropriation level of the Fund must be approved by the City Council as well as any changes between function areas as identified in the chart of accounts. Any increase to the Salary budget also requires Council's approval. All appropriations lapse at year-end except appropriations for Capital Improvement Funds which are carried forward until such time as the project is completed.
BASIS OF BUDGETING
Annual budgets are legally adopted for the General Fund, Special Revenue Fund, Internal Service Fund, Debt Service, and Enterprise Funds. All budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP). Encumbrances are treated as budgeted expenditures in the year the commitment to purchase is incurred; and unencumbered appropriations in the annual operating budget lapse at fiscal year end. Legal provisions, including the City Charter and the Georgia Fiscal Standards Act, also govern the budgetary process.
The General Fund is subject to control on a departmental basis, while the Special Revenue and Debt Service Funds are subject to budgetary control on an individual fund basis. Budgets are prepared for the Capital Project Funds on a project basis, which usually cover two or more fiscal years. Proprietary Fund budgets are prepared and utilized as a management tool to assess the operations of the enterprise and internal service funds.
BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed in all governmental fund types,
expendable trust funds and agency funds. Under this method, revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized when the obligation is incurred, with the exception of principal and interest on general long term debt which is recognized when due.
Those revenues susceptible to accrual are property taxes, local option sales taxes, other taxes, intergovernmental revenue, interest revenue and charges for services. Fines, licenses and permits and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash.
The accrual basis of accounting is utilized by proprietary fund types and pension trust funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
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